Black broadcast media ownership just got a boost. Nexstar Broadcasting Group has made an agreement with Pluria Marshall Jr. and Marshall Broadcasting Group, a black-owned media company, for the sale of three network affiliated TV stations in three markets. The price tag: $58.5 million. Nexstar will guarantee the financing for MBG’s purchase.
MBG will acquire three full-powered, FOX affiliated stations, KMSS-TV (Shreveport, LA), KPEJ-TV (Odessa-Midland, TX) and KLJB-TV (Quad Cities, IA).
Marshall Broadcasting Group is a new minority-owned media firm, owned 100 percent by Marshall Jr., who is president and CEO of Equal Access Media Inc. Equal Access owns and operates such African-American newspapers as Houston Informer Newspapers and The Los Angeles Wave Newspaper Group.
“We believe the proposed transaction announced today presents an ideal framework for introducing and incubating a new, minority-controlled entrant to broadcasting, and for bringing additional news, information and specialized programming to MBG’s markets at the earliest possible opportunity,” said Perry A. Sook, Chairman, President and CEO of Nexstar Broadcasting Group.
MBG has also made a deal with Nexstar to provide sales, technical and administrative functions while MBG maintains control of the stations and programming, reports TargetMarket News.
Under the proposed services agreements, MBG will receive 70 percent of the advertising revenue sold by Nexstar for the stations and will not be required to give payments to Nexstar for achieving revenue goals. And as total revenues increase, so too does MBG’s share.
The timing of this deal is significant. “Also, the deal comes at a time when minority ownership of broadcast properties has gone from 18, full-power commercial TV stations in 2006 to none today,” reports TargetMarket News.
“We are delighted to have the support of Nexstar to promote diversity of media ownership assets among minority operators,” said Pluria Marshall. “Over the last 30 years, I’ve devoted significant time and effort in seeking to purchase television and radio stations. The single key factor in each unsuccessful opportunity has been the inability to access the funding necessary for the purchase.
“With Nexstar’s support and commitment to guarantee financing for the Shreveport, Odessa-Midland and Quad Cities station purchases, we believe we are establishing a new paradigm that addresses recent proposed FCC regulation changes while expanding the opportunity for minority broadcasters to play a greater role in the U.S. broadcasting industry as owners and operators of television stations.”
MBG says it will develop minority-oriented public affairs programming to be broadcast on its stations as well as syndicated to other television stations nationwide.